Mumbai Land Auction Fails; Stocks Surge

Mayank Mehta
03 Mar, 2010
New York City

Mumbai land auction failed to attract a single bidder. ARSS Infrastructure initial public offering surged 52% on its first day of trading. Ranbaxy slips as U.S. regulator delay generic drug approval. Jaiprakash Associates cement shipment surges 61% in February.

[R]6:00 PM Mumbai, 8:30 AM New York – Mumbai land auction failed to attract a single bidder. ARSS Infrastructure initial public offering surged 52% on its first day of trading. Ranbaxy slips as U.S. regulator delay generic drug approval. Jaiprakash Associates cement shipment surges 61% in February.[/R]

Stocks in Mumbai surged for the third day in a row and are up 4.7% after the release of central government budget.

The Sensex index in India increased 227.45 or 1.36% to 17,000.01 and CNX Nifty index rose 71.10 or 1.42% to 5,088.10. Among the Sensex 30 stocks, 24 rose and 6 fell.

On BSE trading, 1,938 stocks advanced, 890 declined and 86 were unchanged. Stocks in realty, healthcare and power generation sectors closed higher.

Exports rose an annual 11.5% in January 2010 to $14.3 billion, the third consecutive monthly increase after thirteen months of decline in a row, the government said on Tuesday. Imports rose 35.5% from a year earlier to $24.7 billion.

ARSS Infrastructure Projects, the builder of roads, railways and irrigation systems closed at Rs 684.20, a 52% premium over the initial public offer price of Rs 450.

Rupee edged higher 14 paisa to 45.87 against one dollar.

Land Sale in Mumbai Failed

Metropolitan Regional Development Authority auction failed to attract any bidders for the sale of 34,000 square feet of land in the Bandra Kurla complex.

The government agency was looking to sell at a reserve price of Rs 300,000 a square meter, same price as in 2008.

Office rents in the region have fallen 35% in the last two years and developers are looking for a price of at least 40% lower than the reserve price established by the agency.

Gainers & Losers

Aurobindo Pharma Limited rose 1.8% to Rs 939.20 after the pharmaceutical company said that the company got approval for its abbreviated new drug submission Cefuroxime Axetil tablets of 250 mg and 500 mg strengths from Canadian regulators.

Bajaj Auto Finance Limited rose 1.7% to Rs 319.80 after Reliance Mutual Fund increased its stake.

BGR Energy Systems Limited decreased 0.8% to Rs 503.30 after the power equipments supplier won several new orders including Rs.46 crore from Indian Oil Corporation.

Jaiprakash Associates Limited increased 4.4% to Rs 142.90 after cement shipments surged 61% in February from a year ago to 11.61 lakh metric tons from 7.23 lakh metric tons in February 2009.

KNR Constructions Limited rose 3.5% to Rs 137.00 after the company announced that its joint venture with JKM Infra Projects (P) and Kamala Constructions has been awarded by Government of Bihar, Water Resources Department an order worth Rs 225 crore for construction works of Eastern Kosi Canal System in the State of Bihar.

Maytas Infra Limited gained 2.9% to Rs 158.80 after the company has reached a repayment settlement with one of its lenders, HDFC Bank.

Nectar Lifesciences Limited surged 9.6% to Rs 40.30 after the pharmaceuticals products said that the company placed 2.6 crore shares at a price of Rs 35 each to NSR Direct PE Mauritius, LLC on preferential basis on February 20 and raised Rs 91 crore.

Orient Abrasives Limited rose 0.6% to Rs 29.25 and the company is setting up two 1.5 mw each wind turbine generators in Kalmangi, Karnataka for generation of power.

Panacea Biotec Limited rose 1.9% to Rs 188.00.

Ranbaxy Laboratories Limited declined 0.4% to Rs 477.20 after the pharmaceutical industry said it would not be able to launch a generic version of a urinary drug in the United States and is still awaiting a final approval from the regulator.

Reliance Industries Limited increased 3.7% to Rs 1,020.70 after the bankrupt petrochemicals maker LyondellBasell rejected a $14.5 billion, or Rs 66,700 crore acquisition bid.

Tata Consultancy Services Limited rose 0.5% to Rs 767.00.

Tata Power Company Limited increased 5.2% to Rs 1,336.90 after the company plans to increase coal mining capacity in Indonesia by 25% starting in the second half of fiscal 2011.

Tricom India Limited surged 14.6% to Rs 15.60 after the company announced that it is in the final round of multi-year contracts in its title insurance and health insurance subsidiaries.

Vipul Limited increased 4.9% to Rs 46.80 after the real estate development and services segment board approved a 2-for-1 stock split.

Wockhardt Limited climbed 2.2% to Rs 145.05.